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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Tuesday, January 29, 2013

Mary Jo White and the revolving door

The Revolving Door in Washington--now at the SEC:

Cop or suspect? - The Economist on Mary Jo White as head of the SEC" . . . The appointment is not without controversy. Ms White has benefited from the revolving door between public service and private practice. In the aftermath of the crisis, financial firms sought the assistance of former regulators with strong ties to the government. In a scathing article on Bloomberg's website, Jonathan Weil notes that Ms White participated in the defence of many people and institutions at the heart of the financial collapse. In October 2008 she was cited in a critical report by the SEC’s inspector general for receiving “relevant information” that was not publicly available. Some will ask whether she is truly a poacher turned gamekeeper or simply setting herself up for another lucrative turn through the revolving door. Mr Obama, for one, is convinced he is getting the "tough-as-nails prosecutor". By putting Ms White at the SEC, he has suggested that the agency’s priority is enforcement. But a bigger challenge may come from the sprawling Dodd-Frank legislation, and its many gaps and contradictions. Much of the next chairman’s time should be devoted to rethinking how America’s capital markets are structured, and deciding how that vision will be translated into the numerous rules the SEC is required to write under Dodd-Frank’s sloppy mandates. . . ."